Yamal LNG receives USD 3 bln bank guarantee

May 22, 2015

Novatek’s Yamal LNG project was given $3 billion in guarantees by VEB, Russia’s development bank, instead of the previously planned $1 billion loan.

Novatek-operated, Yamal LNG project also entered in talks with Chinese institutions for $10 to $15 billion portion that would close the total funding of the project that stands at $27 billion, Reuters reports. Yamal LNG already secured $3 billion from Russia’s National Wealth Fund.

Yamal LNG will also be supported by Russia’s Sberbank and Gazprombank.

Novatek is further engaged in talks with Asia-based companies to sell a 9% interest stake in the project.

Novatek owns a 60% stake in the project while Total and China’s CNPC each hold a 20% stake.

The production from the 16.5 mtpa project is scheduled to start in 2017.